SUMMARY
RADEN RAMDAN ACHMAD DJAUHARI. The Effect of Domestik and International Macroeconomic Variables on Sectoral Non Performing Loan (NPL) in Indonesia. Supervised by NOER AZAM ACHSANI and IMAM TEGUH SAPTONO.
The condition of Non Performing Loan (NPL) is one of the main indicators showing the health of the banking industry. Generally, the total NPL of banks in Indonesia shows a pattern of movements that are in line with Indonesia's macroeconomic conditions. In the event of extreme conditions such as the crisis, the banking NPL is at a higher level than when the economy is in normal condition. However, sectoral NPL movement (according to economic sector) shows different variations which may occur due to differences in response of each sector to changes in existing macroeconomic variables. The influence and response of each sector to the movement of macroeconomic variables needs to be done in order to provide a complete picture and can be a risk mitigation of the banking on the loan disbursed.
This research uses descriptive quantitative method that aims to provide an overview of a particular event by using data processing in the form of numbers with statistical aids using secondary data on Indonesian domestik macroeconomic variabels as well as international macroeconomics, with national banking Non Performing Loan (NPL) in Indonesia.
Processing techniques and data analysis in this research is quantitative descriptive analysis. Analytical tools used are Vector Auto Regression (VAR) / Vector Error Correction Model (VECM) using E-Views 9.0 and MS Office software. Based on the results of research conducted to obtain conclusions based on domestik macroeconomic variables are domestic interest rate (BIRATE), price level (CPI), production rate (IPXINA), exchange rate (KURS), trade (TRADE) and also international macroeconomic variabels interest rate (LIBOR), world oil price (OIL), and also China's production level (IPXCHINA) against sectoral NPLs 8 and aggregate NPLs, indicating that all macroeconomic variabels tested have an influence and respond each direction in varying directions accordingly NPL movement.
Keywords: macroeconomics, banking NPL, VAR / VECM
